Activity - Strategic Management Generic Strat. Plan

Activity:
Generic Strategy Business Plan/Model
Business:
Doom Dumplings
SWOT ANALYSIS
STRENGTHS WEAKNESSES
 Excellent sales staff with strong  Currently struggling to meet deadlines
knowledge of the products and target - too much work?
market  Market research data updated late
 Strong Management: We assemble a  Cash flow problems
team that embraces different disciplines  Holding too much stock
with expertise in all areas of the  Lack of reputation: Still needs to work
business. on establishing the business as
 Good relationship with customers reputable on-the-go food provider.
 Good internal communications
 High traffic location
OPPORTUNITIES THREATS
 Similar products on the market are not  Competition: One competitor opening
as reliable or are more expensive a big place nearby and offers similar
 Loyal customers product
 Can partner with food delivery  Competitors have launched a new
companies locally like food panda advertising campaign
 Customer demand - have asked sales  Holiday Season Coming: People tend
staff for similar product to cook at home than to eat outside
 Downturn in economy may mean
people are spending less
Potential strategies for growth
Access startup funds. Doom Dumplings needs to investigate its options for obtaining capital.
Funding a new business can take time, and the sooner Doom Dumplings gets started on this
process, the better.
Create a marketing plan. Because Doom Dumplings wants to implement such a specific
marketing strategy—targeting working passers-by, young and old by emphasizing the service
we are offering is both healthy and convenient—the company should develop a marketing plan.
Plan a grand opening. A key piece of that marketing plan will be the store’s grand opening, and
the promotional strategies necessary to get Doom Dumpling target market in the store.
A strong grand opening will help establish the store’s reputation, so it is essential that the
Doom Dumpling team feels ready for its first day. If the management team feels unprepared for
the potential large crowds, a “soft” opening (such as an invite-only trial opening that offers free
meals in exchange for feedback) may be a smart choice.
FIVE FORCES ANALYSIS

Threats of New Entrants
New entrants in On the go foods brings innovation, new ways of doing things and put pressure
on Doom Dumplings through lower pricing strategy, reducing costs, and providing new value
propositions to the customers. Doom Dumplings has to manage all these challenges and build
effective barriers to safeguard its competitive edge.
How Doom Dumplings tackle the Threats of New Entrants
 By innovating new products and services. New products not only bring new customers to the
fold but also give old customer a reason to buy Doom Dumplings products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New entrants are less
likely to enter a dynamic industry where the established players such as Doom Dumplings keep
defining the standards regularly. It significantly reduces the window of extraordinary profits for
the new firms thus discourage new players in the industry.
Bargaining Power of Suppliers
All most all the companies in Fast Food Business industry buy their raw material from numerous
suppliers. Suppliers in dominant position can decrease the margins Doom Dumplings can earn
in the market. The overall impact of higher supplier bargaining power is that it lowers the
overall profitability of the food we are offering.
How Doom Dumplings tackle Bargaining Power of the Suppliers
 By building efficient supply chain with multiple suppliers.

 By experimenting with product designs using different materials so that if the prices go up of
one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm.
Bargaining Power of Buyers
Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on Doom Dumplings profitability in the long run.
The smaller and more powerful the customer base is of Doom Dumplings the higher the
bargaining power of the customers and higher their ability to seek increasing discounts and
offers.
How Doom Dumplings can tackle the Bargaining Power of Buyers
 By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its
sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if Doom Dumplings keep on coming up with new products then it can
limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of Doom Dumplings to its
competitors.
Threats of Substitute Products or Services
When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. The threat of a substitute product or service is high if it offers a value
proposition that is uniquely different from present offerings of the industry.
How Doom Dumplings tackle the Treat of Substitute Products / Services
 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the customer is buying.
 By increasing the switching cost for the customers.
Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive down prices
and decrease the overall profitability of the industry. This competition does take toll on the
overall long term profitability of the organization.
How Doom Dumplings tackle Intense Rivalry among the Existing Competitors in Processed &
Packaged Goods industry
 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing for small
market.
Implications of Porter Five Forces on Doom Dumplings
By analyzing all the five competitive forces Doom Dumplings strategists can gain a complete
picture of what impacts the profitability of the organization in Fast Food Business Industry, they
can identify game changing trends early on and can swiftly respond to exploit the emerging
opportunity.

Activity - Strategic Management Generic Strat. Plan

Uploaded by

Copyright:

Available Formats

Activity - Strategic Management Generic Strat. Plan

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Activity - Strategic Management Generic Strat. Plan

Uploaded by

Copyright:

Available Formats

Activity:

Generic Strategy Business Plan/Model

FIVE FORCES ANALYSIS

How Doom Dumplings tackle the Threats of New Entrants

Bargaining Power of Suppliers

How Doom Dumplings tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

Bargaining Power of Buyers

How Doom Dumplings can tackle the Bargaining Power of Buyers

Threats of Substitute Products or Services

How Doom Dumplings tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.

Rivalry among the Existing Competitors

 By building a sustainable differentiation

Implications of Porter Five Forces on Doom Dumplings

You might also like